What are the possible long-term capital gains tax rates?

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Multiple Choice

What are the possible long-term capital gains tax rates?

Long-term capital gains are taxed at preferential rates that depend on your income and filing status. The standard long-term capital gains rates are 0%, 15%, or 20%. The 0% rate applies to lower-income taxpayers, the 15% rate covers a broad middle range, and the 20% rate applies to higher-income earners. There’s also a separate 3.8% net investment income tax for some high-income individuals, which can raise the effective rate on investment gains beyond these amounts, but that is an additional consideration outside the basic long-term rate structure. The other options don’t match how these rates are structured: 10% or 25% aren’t the general long-term capital gains rates, and 15% alone isn’t the full range for all taxpayers.

Long-term capital gains are taxed at preferential rates that depend on your income and filing status. The standard long-term capital gains rates are 0%, 15%, or 20%. The 0% rate applies to lower-income taxpayers, the 15% rate covers a broad middle range, and the 20% rate applies to higher-income earners. There’s also a separate 3.8% net investment income tax for some high-income individuals, which can raise the effective rate on investment gains beyond these amounts, but that is an additional consideration outside the basic long-term rate structure. The other options don’t match how these rates are structured: 10% or 25% aren’t the general long-term capital gains rates, and 15% alone isn’t the full range for all taxpayers.

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